Payment Terms for DVC Rentals?

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When you rent DVC points, how much do you ask for a deposit and when do you require the balance?

Also, dos anybody have a contract or signed agreement for both parties to sign so everyone is protected? In other words, something which guarantees the renter will have his villa in his name when he arrives and something to protect the DVC owner that says the renter is responsible in the unlikely event of any damage to the villa?

I'm considering renting for the first time and any help will be appreciated!

Best wishes,
Dave

 

[RobDoc]

Here is a thread started by Granny awhile ago with some suggestions for rental contracts.

With any of the financial arrangements, just make sure you are satisfied with any timeline presented. There are a number of different approaches used in the past - just be sure you are happy with any aggreement before getting involved by sending (or accepting) any money.

Good luck!

 

[JimMIA]

In Granny's excellent thread, you'll see several versions of sample contracts, as well as some conversation about what contracts can or cannot provide.

Bear in mind, though, that the timelines Doc is talking about may vary from owner to owner, and from rental to rental by the same owner. I doubt if there is one standard, because you will be at a different point in your use year (e.g. banking deadline issues, among others), and the guest will be at varying lengths of time prior to their arrival.

If possible, you need to come up with a payment schedule that satisfies both parties, and protects both parties. There is such a thing as a bad match between owner's UY and guest's vacation timetable...so an agreeable schedule may not always be possible.

 

[RobDoc]

For example - if the date of the reservation is within 31 days - it might be wise to insist on payment in full BEFORE making the reservation - since cancellation for non-payment would result in those points going into the Holding Account with other restrictions.

If you are 11 months from the arrival date, you can certainly offer a more relaxed payment schedule.

If your points will expire in a short time , thus limiting your ability to re-rent them in the event of non-payment, you might also consider a more strict payment arrangement.

 

[byoung]

When we rented we paid the renter in full after we got the ressie.

 

[RobDoc]

When we rented we paid the renter in full after we got the ressie.

If your reservation was made within 31 days, IMO, the member you rented from was foolishly taking a HUGE risk by not getting payment in advance, since his points were committed ad if the payment did not arrive the points, at best, would go into the Holding Account.

If the reservation was for a time months ahead, then asking for payment after the confirmation was received was fine.

The point here is that the details need to be thought out and agreed upon in advance so they are beneficial to both parties. If your reservation was for a time within 31 days, and you did not send payment, the member would be penalized when he cancelled the reservation.

 

[JimMIA]

If your reservation was made within 31 days, IMO, the member you rented from was foolishly taking a HUGE risk by not getting payment in advance, since his points were committed ad if the payment did not arrive the points, at best, would go into the Holding Account.

This example Doc offers is one reason why many experienced DVC owners will not even consider renting to someone making a last-minute reservation. The risk is just magnified in that situation.

 

[CarolMN]

FWIW, I think rental contracts are very good for people of integrity and good will. They help to insure that everyone understands the terms. From what I've seen on the boards, the few problems & issues that arise stem mostly from owners and/or renters who are inexperienced and really don't understand what they are doing.

There have been a few (very few) instances of fraud, but they got much more publicity than did the thousands of transactions that went off without a hitch. In the fraud case that I recall (from this board), the renter made some foolish decisions - and basically ignored her own "bad feelings".

Anyway, if someone fails to live up to his/her side of the deal, a contract isn't of much value because you'd probably have to sue/go to court to enforce it.
That will likely cost more than you could recover.

Use the sample contracts to make sure everyone understands the terms, It's especially important to spell out what happens if the renter has to cancel.